Preview
FILED: NASSAU COUNTY CLERK 08/15/2018 02:50 PM INDEX NO. 609073/2016
NYSCEF DOC. NO. 92 RECEIVED NYSCEF: 08/15/2018
EXHIBIT I
|FILED
FILED: NASSAU
: NASSAU COUNTY
COUNTY CLERK
CLERK 08/15/2018 02:50 INDEX NO. 609073/2016
03/09/2017 11: 52 PM
AM)
INDE O. 609073/2016
NYSCEF DOC. NO.
NO. 92
55
NYSCEF DOC. , RECEIVED
RECEIVED NYSCEF:
NY CEF: 08/15/2018
03/09/2017
SHORT FORM ORDER
SUPREME COURT - STATE OF NEW YORK
Present:
HON. STEPHEN A. BUCARIA
Justice
TRIAL/IAS, PART 1
SCOTTISH AMERICAN CAPITAL, LLC NASSAU COUNTY
And SCOTTISH AMERICAN INSURANCE
GENERAL AGENCY, INC.,
INDEX No. 609073/16
Plaintiffs,
MOTION DATE: 2/17/17
Motion Sequence 001
-against-
ARTHUR GOLANN, NORTHEAST COVERAGES
INC.,
Defendants.
The following papers read on this motion:
Notice of Motion.......................................X
Affirmation in Support..............................XX
Affirmation in Opposition...................XX
Memorandum of Law................................XX
Motion by plaintiffs Scottish American Capital, LLC and Scottish American Insurance
General Agency, Inc. for a preliminary injunction is denied.
This is an action for breach of a covenant not to compete. Plaintiff Scottish American
Insurance General Agency is an insurance broker. Defendant Arthur Golann is an insurance
account executive. Golann was a 20% member of Scottish American's predecessor Buckingham
of LI, LLC.
On December 31, 2009, Golann sold his interest back to Buckingham for $200,000. At
that time, Golann entered into a three year employment agreement with Buckingham, effective
January 1, 2010. The agreement contains a restrictive covenant that for two years after
policy"
termination of the agreement Golann will not solicit any "active or "renewal of any
policy"
existing placed by Buckingham.
1 of 3
FILED
FILED: NASSAU
: NASSAU COUNTY
COUNTY CLERK
CLERK 08/15/2018
03/09/2017 02:50
11:52 PM INDEX
INDEX NO.
NO. 609073/2016
609073/2016
ANQ
NYSCEF
NYSCEF DOC. NO.
DOC. NO. 92
55 RECEIVED
RECEIVED NYSCEF:
NYSCEF: 08/15/2018
03/09/2017
SCOTTISH AMERICAN CAPITAL% GOLANN Index No. 609073/16
On January 1, 2012, Buckingham and Golannentered into a new employment agreement
without a specific duration. The new agreement contains a similar restrictive covenant but limits
the restriction to eighteen months from termination of employment.
On December 27, 2012, Buckingham was sold to plaintiff Scottish American Capital,
LLC, the parent company of Scottish American Insurance General Agency. On September 11,
2015, Golann resigned from Scottish American, allegedly because of an anti-semitic work
environment. Golann then began to work for defendant Northeast Coverages Inc., an insurance
broker which services many of the same customers as Scottish American.
This action was commenced on November 22, 2016. Plaintiffs allege that Golann
solicited Scottish American clients in violation of the restrictive covenant. Plaintiff assert claims
for breach of the restrictive covenant, unfair competition, and tortious interference with the
restrictive covenant.
By order to show cause dated January 30, 2017, plaintiffs move for a preliminary
business"
injunction, enjoining Golann from soliciting "any with any insurance client that had a
policy placed by plaintiffs as of September 11, 2015. Scottish American asserts that its detailed
customers'
knowledge of its business is a trade secret that allows it to provide cost-effective
clients'
coverage meeting its needs.
"admitted,"
In opposition, Golann asserts that his work for Northeast involves issuing or
"non-admitted,"
self-renewing, policies, whereas Scottish American primarily issues policies
which do not automatically renew. Defendant argues that Scottish American breached the
employment agreement by constructivelydischarging him, and therefore he should be relieved
from the restrictive covenant.
In reply, plaintiffs
submit Golann's resignation letter. In the letter, Golann states that
decisiontomake."
resignation was "not an easy Golann appreciated Scottish American's
support" future."
"professional guidance and and wished the company "success in the Thus,
plaintiffs suggest that the purported hostile work environment was merely a pretext.
Noncompete clauses in employment contracts are not favored and will be enforced to the
extent reasonable and necessary to protect valid business interests (Morris v Schroeder Capital,
7 NY3d 616, 620 [2006]). A restraint is reasonable only if it 1) is no greater than is required for
the protection of the legitimate interest of the employer 2) does not impose undue hardship on
the employee, and 3) is not injurious to the public (BDO Seidman v Hirschberg, 93 NY2d 382,
388 [1999]). A restrictive covenant will be subject to specific performance only to the extent
that it is reasonable in time andarea(Id).
The court notes that, by its terms, the restrictive covenant will expire on March 11, 2017.
In view of the very short duration remaiMng, there is no point in issuing a preliminary
injunction.
2 of 3
FILED:
[FILED : NASSAU
NASSAU COUNTY
COUNTY CLERK
CLERK 08/15/2018
03/09/2017 02:50
11: 52 PM
AM INDEX
INDEX NO.
NO. 609073/2016
609073/2016
NYSCEF
NYSCEF DOC. NO.
DOC. NO. 92
55 ,A RECEIVED
RECEIVED NYSCEF:
NYSCEF: 08/15/2018
03/09/2017
SCOTTISH AMERICAN CAPITAL v G OLANN Index No. 609073/16
Plaintiffs'
motion for a preliminary injunction, restraining defendants from soliciting customers
who held insurance policies issued by Scottish American as of September 11, 2015 is denied.
Plaintiffs'
request for expedited discovery is denied with leave to renew at the preliminary
conference.
Please be advised that a Preliminary Conference has been sche Med for April 21, 2017
at 9:30 a.m. in Chambers of the undersigned. Please be further advised that counsel appearing
for the Preliminary Conference shall be fully versed in the factual background and their client=s
schedule for the purpose of setting firm deposition dates.
So ordered. .
Date: 3 /7
J.S.C.
ENTERED
MAR 09 2017
NASSAU COUNTY
COUNTY CLERK'S OFFICE
3 of 3
Preview
FILED: NASSAU COUNTY CLERK 08/15/2018 02:50 PM INDEX NO. 609073/2016 NYSCEF DOC. NO. 92 RECEIVED NYSCEF: 08/15/2018 EXHIBIT I |FILED FILED: NASSAU : NASSAU COUNTY COUNTY CLERK CLERK 08/15/2018 02:50 INDEX NO. 609073/2016 03/09/2017 11: 52 PM AM) INDE O. 609073/2016 NYSCEF DOC. NO. NO. 92 55 NYSCEF DOC. , RECEIVED RECEIVED NYSCEF: NY CEF: 08/15/2018 03/09/2017 SHORT FORM ORDER SUPREME COURT - STATE OF NEW YORK Present: HON. STEPHEN A. BUCARIA Justice TRIAL/IAS, PART 1 SCOTTISH AMERICAN CAPITAL, LLC NASSAU COUNTY And SCOTTISH AMERICAN INSURANCE GENERAL AGENCY, INC., INDEX No. 609073/16 Plaintiffs, MOTION DATE: 2/17/17 Motion Sequence 001 -against- ARTHUR GOLANN, NORTHEAST COVERAGES INC., Defendants. The following papers read on this motion: Notice of Motion.......................................X Affirmation in Support..............................XX Affirmation in Opposition...................XX Memorandum of Law................................XX Motion by plaintiffs Scottish American Capital, LLC and Scottish American Insurance General Agency, Inc. for a preliminary injunction is denied. This is an action for breach of a covenant not to compete. Plaintiff Scottish American Insurance General Agency is an insurance broker. Defendant Arthur Golann is an insurance account executive. Golann was a 20% member of Scottish American's predecessor Buckingham of LI, LLC. On December 31, 2009, Golann sold his interest back to Buckingham for $200,000. At that time, Golann entered into a three year employment agreement with Buckingham, effective January 1, 2010. The agreement contains a restrictive covenant that for two years after policy" termination of the agreement Golann will not solicit any "active or "renewal of any policy" existing placed by Buckingham. 1 of 3 FILED FILED: NASSAU : NASSAU COUNTY COUNTY CLERK CLERK 08/15/2018 03/09/2017 02:50 11:52 PM INDEX INDEX NO. NO. 609073/2016 609073/2016 ANQ NYSCEF NYSCEF DOC. NO. DOC. NO. 92 55 RECEIVED RECEIVED NYSCEF: NYSCEF: 08/15/2018 03/09/2017 SCOTTISH AMERICAN CAPITAL% GOLANN Index No. 609073/16 On January 1, 2012, Buckingham and Golannentered into a new employment agreement without a specific duration. The new agreement contains a similar restrictive covenant but limits the restriction to eighteen months from termination of employment. On December 27, 2012, Buckingham was sold to plaintiff Scottish American Capital, LLC, the parent company of Scottish American Insurance General Agency. On September 11, 2015, Golann resigned from Scottish American, allegedly because of an anti-semitic work environment. Golann then began to work for defendant Northeast Coverages Inc., an insurance broker which services many of the same customers as Scottish American. This action was commenced on November 22, 2016. Plaintiffs allege that Golann solicited Scottish American clients in violation of the restrictive covenant. Plaintiff assert claims for breach of the restrictive covenant, unfair competition, and tortious interference with the restrictive covenant. By order to show cause dated January 30, 2017, plaintiffs move for a preliminary business" injunction, enjoining Golann from soliciting "any with any insurance client that had a policy placed by plaintiffs as of September 11, 2015. Scottish American asserts that its detailed customers' knowledge of its business is a trade secret that allows it to provide cost-effective clients' coverage meeting its needs. "admitted," In opposition, Golann asserts that his work for Northeast involves issuing or "non-admitted," self-renewing, policies, whereas Scottish American primarily issues policies which do not automatically renew. Defendant argues that Scottish American breached the employment agreement by constructivelydischarging him, and therefore he should be relieved from the restrictive covenant. In reply, plaintiffs submit Golann's resignation letter. In the letter, Golann states that decisiontomake." resignation was "not an easy Golann appreciated Scottish American's support" future." "professional guidance and and wished the company "success in the Thus, plaintiffs suggest that the purported hostile work environment was merely a pretext. Noncompete clauses in employment contracts are not favored and will be enforced to the extent reasonable and necessary to protect valid business interests (Morris v Schroeder Capital, 7 NY3d 616, 620 [2006]). A restraint is reasonable only if it 1) is no greater than is required for the protection of the legitimate interest of the employer 2) does not impose undue hardship on the employee, and 3) is not injurious to the public (BDO Seidman v Hirschberg, 93 NY2d 382, 388 [1999]). A restrictive covenant will be subject to specific performance only to the extent that it is reasonable in time andarea(Id). The court notes that, by its terms, the restrictive covenant will expire on March 11, 2017. In view of the very short duration remaiMng, there is no point in issuing a preliminary injunction. 2 of 3 FILED: [FILED : NASSAU NASSAU COUNTY COUNTY CLERK CLERK 08/15/2018 03/09/2017 02:50 11: 52 PM AM INDEX INDEX NO. NO. 609073/2016 609073/2016 NYSCEF NYSCEF DOC. NO. DOC. NO. 92 55 ,A RECEIVED RECEIVED NYSCEF: NYSCEF: 08/15/2018 03/09/2017 SCOTTISH AMERICAN CAPITAL v G OLANN Index No. 609073/16 Plaintiffs' motion for a preliminary injunction, restraining defendants from soliciting customers who held insurance policies issued by Scottish American as of September 11, 2015 is denied. Plaintiffs' request for expedited discovery is denied with leave to renew at the preliminary conference. Please be advised that a Preliminary Conference has been sche Med for April 21, 2017 at 9:30 a.m. in Chambers of the undersigned. Please be further advised that counsel appearing for the Preliminary Conference shall be fully versed in the factual background and their client=s schedule for the purpose of setting firm deposition dates. So ordered. . Date: 3 /7 J.S.C. ENTERED MAR 09 2017 NASSAU COUNTY COUNTY CLERK'S OFFICE 3 of 3